FAQs - Fund Accounting and Internal Controls

Fund Accounting Internal Control Questions, 11/14/2006

Fund Accounting Internal Control Questions, 10/31/2006

Regarding Deposits - What is the proper storage/security of un-deposited cash and checks?

Policy II.E.4 states: Items must be properly secured--preferably in a departmental safe or in a locked file cabinet, desk, or cash box.

Is there a form for authorization of PI designee?

This is being reviewed by the PI usability group

What financial training will be offered in the future?

The Introduction to Business Administration is now offered and in the future will be required for new employees in conjunction with the Navigation class. There will be 3 levels of certifications offered: Basic, Intermediate, and Advanced.

Please visit the Business Professional Development Program - BPDP website.

Is the HRMS Specialist responsible for notifying employees of policies, leave, etc?

Departmental Responsibilities for Payroll Policy: Departmental University Payroll Contact Each department must designate at least one employee as their payroll contact. This person will be responsible for the preparation of all payroll input. Responsibilities of the departmental payroll contact include the following:

Accurate completion and timely submission of all payroll documents. Documents must be signed by the department head or authorized designee to be processed by UHR Payroll Division.

Disseminating payroll information received from UHR Payroll Division to the employees in their department.

Answering questions from employees in their area. In most cases, the departmental contact should be able to answer any payroll questions.

NIH paid conference expenses and UVA charged to offset expenses. The costs were not recovered and conference operated at a loss. How is this handled ?

This would be grant specific – OSP should be notified

Fund Accounting Internal Control Questions, 9/26/2006

Would a student donated artwork be considered Decorative Art and included in Financial and Administrative Policy IX.A.4?

The definition of decorative art is:

Fine and decorative art includes the following types of items that could have considerable monetary or historical value, or are of special significance to the University. Items such as posters would not generally be included unless it is rare, and therefore valuable. In general, fine arts objects possess a quality that makes them worth more than their utility value.

What is the Business Continuity Plan and is it different from a Recovery Plan?

RECOVERY: This refers to your department's activities to return to your pre-emergency condition both physically and financially. This includes identifying missing or injured persons; securing the site to prevent additional damage, loss of property, or injury; assessing and identifying damages; working with the Office of Risk Management on pre-authorization before incurring continuity and recovery expenses; recording and reporting damages, recovery, and continuity costs; repairing or replacing damaged items; and filing a claim through the Office of Risk Management.

CONTINUITY: This refers to the resumption of critical functions. To resume operations that must continue when your normal place of business is not available, you must make decisions before an emergency has occurred, such as the possible location of an alternate operation site or how a temporary location will be selected; how to provide computer, telephone, and other services; and what other resources are required in order to operate.

Fund Accounting Internal Control Questions, 9/21/2006 ~ UVA Wise

How is the value determined of donated art work? Is there an appraisal process?

There is no specific dollar amount that constitutes whether an item is deemed decorative art. The following is the general information from the policy X.E.2

Fine and decorative art includes the following types of items that could have considerable monetary or historical value, or are of special significance to the University. Items such as posters would not generally be included unless it is rare, and therefore valuable. In general, fine arts objects possess a quality that makes them worth more than their utility value.

How will used library books be handled under the new procurement guidelines? How does the library in Charlottesville plan to handle? Often the books are only available from a handful of sources and they are not sure how to deal with quotes on these as they now but usually through Amazon.

Wise has a grant which conducts a survey. They subcontracted the survey work to one member of the grant. They handled this through a procurement contract, but want to make sure that it was handled correctly. Should it go through Procurement or OSP?

Procurement contract was the correct process. It is a subcontract and subsequent payment and therefore is handled by procurement.

Can Wise use our sales tax ID to process their state sales tax collections or do they need to obtain one of their own?

Wise should use the existing sales tax identification number for the UVA@Wise bookstore.

Fund Accounting Internal Control Questions, 9/5/2006

What is F&A?

F&A stands for Facilities and Administrative costs. It is the current federal government, OMB Circular A-21, terminology for what was formerly known as indirect costs and applies to grants and contracts. Many people also refer to this as overhead. A-21 defines F&A as costs that are incurred for common or joint objectives and, therefore, cannot be identified readily and specifically with a particular sponsored project, an instructional activity, or any other institutional activity.

The "facilities" components include the costs of utilities, depreciation on buildings, depreciation on capital equipment, maintenance and repair, and libraries.

The University is allowed to charge these F&A costs to the sponsors of grants and contracts.

On a non-grant, when another department is paying for expenses to a department for using their resources(supplies, space, personnel) can the F&A rate be used as a guideline?

Yes.

The internal controls state that deposits $200.00 must be deposited daily. If the department has limited number of people and due to absence of one cannot make deposit daily, can a written exception be requested?

No written exceptions are allowed. Only in extreme circumstances (one time occurrences) will the standard procedure be varied. Endorsed checks may be sent to the cashier via messenger mail. Larger amounts of cash must still be deposited, and another department should be able to assist. Refer specific circumstance questions to Revenue and Collections.

Is there a minimum on surplus property that you do not have to report and can just dispose?

No - Departmental Surplus Property may be defined as any item that is not needed, is no longer useful, or is no longer functional and cannot be repaired or improved in a cost-effective manner.

Fund Accounting Internal Control Questions, 8/29/2006

What is investment income and endowments?

Endowments are gift funds given to the University and are restricted. The principal is never spent, but invested for interest income which is used. An example would be an endowment for a scholarship fund – The University would invest the endowment to generate interest to fund the scholarship.

What is intellectual property?

An example would be money that has been received for patents, copyrights, and trademarks.

The Helpdesk is frequently questioned what expenditure type to use. Who should these calls be referred to?

Depends on the area in question. For property and equipment - Financial Reporting; John Smith. If it is an HR or Procurement area - refer to them. On G awards, OSP is who should be referred to.

Reference FAQ's from 7/18/2006 - #8.

How important is the exact detail for expenditure types?

VERY - important for all reporting, and critical for grants and State Fund specific allowances

Reporting is used for outside sources, state legislation, as well as for the University

What is an Agency YY award?

YY awards do not belong to the University. Foundations use our system, the University holds the money for them, but the money is segregated out of institutional reports

Is there a rule of thumb for funding using multiple awards?

Cannot do this with G awards.

Non-grants - linking a project to multiple awards vs. creating a new project may be a departmental choice. It is the source of funds and its usage.

Payment vouchers in IS - when a GL string is used when it should have been a PTAEO, how is this corrected?

There is a Discoverer report IS.AP_Transactions without PTAEO values

Most times it has to be reversed through Accounts Payable and a corrected entry done

What defines Decorative Art - is there a dollar limit or other criteria?

This was questioned on 7/18/2006 and can be referenced – question #9

Is there a policy referencing employee use of University services that are reimbursed?

None currently exist that are specific to this situation.

Fund Accounting Internal Control Questions, 8/22/2006

When running reports for reconciliations, do I have to run each project separately? Is there any way I can see my org in total?

ISDS is working on the development of reporting which will address this issue.

How are F&A budgets installed?

Caroline Beeman in financial reporting is installing 75% of prior year, and adjusting to actual around March. There are reports that allow a department to see the actual costs on the Financial Reporting Website

Requests were made for a representative from Procurement to be a future speaker at a Brown Bag.

OTPS Suspense - with e-services, will the problem of no LPO be circumvented?

No, because isp's can still hit the suspense if they do not have a valid PTAEO and no response from the department.

What are some specific guidelines regarding information requested from an outside source? Is there a policy regarding calls questioning the dates of student employment? Also, the FBI will just come to a department to do an employment background check on a former employee, must that be routed through HR?

Employment questions are routed through HR. Personal references are not.

Fund Accounting Internal Control Questions, 8/08/2006

FROM 8/1/2006 - Does Facilities offer a service to shred sensitive documents?

Facilities management DOES NOT offer a shredding service. Materials in secure bins do not get shredded, but are shrinking wrapped and forwarded directly to the mill with no human hands touching it here. I have the question submitted to Professor Jordan about whether this is sufficient.

How do I request a new YY award?

You need to fill out the ICOM form on the Budget Offices website, but forward it to Tommye Arnold in Accounting Services. It will need a detailed explanation of why an outside entity needs to use the Oracle system and if a contract is involved a copy of that signed contract.

Can the Cashier's Office utilize a special colored envelope for deposits (like Development) to help identify it and move it through messenger mail quicker? Also, can a receipt be provided back from the Cashier's for deposits sent through messenger mail?

No. The delivery time will not be shortened. Also, the colored envelopes can only be used for incoming, so it would be cost prohibitive. For security purposes, it is not advisable to identify checks and bank information being messenger mailed.

Is the University self-insured and against what? Is there a deductible?

Property Coverage: The State Division of Risk Management (DRM) has developed a Property Insurance Plan, which is comprised of self-insurance and commercial insurance. The Plan covers all State-owned buildings; contents; related contents and equipment on or off grounds; loss of business-related income; and in certain cases, extra expense incurred to expedite repairs

All State-owned buildings and contents are covered for repair or replacement, but all losses are subject to a departmental $1000 deductible. The department responsible for the property incurs the deductible. When multiple departments are involved in one loss, the deductible is shared by all departments involved, and must be paid from departmental funds. State and University procurement guidelines must be followed after the department files a claim to have property repaired or replaced. When a single loss exceeds the departmental deductible of $1000, the University will pay up to the next $99,000 for that loss. If a loss exceeds $100,000, the State insurance program begins to pay for the loss above the $100,000 threshold

Does AP have any advice on communicating the need for using earned Frequent Flyer and similar rewards against future University Travel?

It is particularly problematic for departments when the traveler uses their own credit card.

Is their a boilerplate or guideline available for doing a Business Continuity Plan?

Fund Accounting Internal Control Questions, 8/01/2006

Is personal property such as a picture kept in an employee's office in any way covered by the University's insurance if it is stolen or damaged?

No, personal property belonging to employees that they bring into their offices is not covered by the University. A person's homeowner's insurance would be the appropriate insurance coverage for such losses.

At the same time, there are a couple exceptions:

If the University were to borrow an employee's personal property for use here at the University (this would need to be documented by the employee’s supervisor) - this rarely ever occurs; or,

If an employee's personal property is damaged due to clear negligence on the part of the University or its staff.

How do you get a new SG award set up?

Through The Budget Offices ICOM form.

Is there any plan where you can designate "terminate all responsibilities" when an employee leaves or transfersinstead of researching and listing each one the employee possesses?

The following has been added to the form:

Transfer Out of Department: The signature in this box represents authorization to deactivate all active Integrated System responsibilities for the above named individual with the exception of Employee Self Service. The only signature required to deactivate all Integrated System responsibilities is the supervisor of record.

Does Facilities offer a service to shred sensitive documents?

Facilities management DOES NOT offer a shredding service. Materials in secure bins do not get shredded, but are shrink wrapped and forwarded directly to the mill with no human hands touching it here. I have the question submitted to Professor Jordan about whether this is sufficient.

Fund Accounting Internal Control Questions, 7/25/2006

FROM 7/18/2006 - A further clarification on separation of duties in the areas of procurement. Of particular interest is the person placing the order not being the one to process the receiver.

The requirement is that 2 people be knowledgeable of the transaction. The same person may order and process the receiver as long as someone else is aware of it.

When someone loans a piece of equipment to the University, is there any way to have the asset tagged for tracking purposes?

If it is loaned by a sponsor for sponsored research and meets the capital threshold of $5000, Property Accounting (924-4284) should be notified. If it is not sponsored research related, Property Accounting does not need to be involved, but Risk Management (924-3055) should be notified for insurance purposes.

Guidance on how to treat new University Employees in regards to making sure they are aware of leave polices and other HR benefits.

How strict is AP going to be with the pre-travel workbook, often faculty members have already traveled before financial staff knows about it.

Faculty and department members need to have the need for this stressed to them. It is a policy that we need to adhere to, however, if it does occur please call Cheryl Pleasants (924-4359) in Accounts Payable and she will try to work with you to get the person reimbursed.

Is there any plan to provide a year end statements in relationship to stipends/fellowships received?

This will be part of the discussion with the new student system, but there are no immediate plans to make a change in this area. Also the IRS does not require this statement.

Can a revenue project be changed on an award or do you have to start a new award?

Depending on the circumstances it may be possible. You would need to work with the office that oversees that type of money to determine if it is feasible and they would institute the change for you.

There were a few items that participants thought should really be highlighted.

New projects are required whenever there is a different expenditure function required. Example if you have a gift award and want to fund activities related to instruction and research, you must have two projects with the expenditure function for instruction and one with the expenditure function of research.

When using task you should not fund at the task level.

Also when using task do not specify a task manager as it causes difficulty if the person leaves the University.

Fund Accounting Internal Control Questions, 7/18/2006

Is there a document somewhere that can help me choose the correct expenditure function when setting up a project?

Is there a dollar amount at which something is considered decorative art?

There is no specific dollar amount that constitutes whether an item is deemed decorative art. The following is the general information from the policy X.E.2

Fine and decorative art includes the following types of items that could have considerable monetary or historical value, or are of special significance to the University. Items such as posters would not generally be included unless it is rare, and therefore valuable. In general, fine arts objects possess a quality that makes them worth more than their utility value.

Is there any plan to remove the Social Security number from Employee Work Profiles?

Yes there is currently a project under way that will replace SS# with Employee #.

Are student fund raising activities for outside organizations such as a bake sale to raise money for MS required to be approved?

Yes these do need to be approved.

A further clarification on separation of duties in the areas of procurement. Of particular interest is the person placing the order not being the one to process the receiver.

STILL OUTSTANDING

Fund Accounting Internal Control Questions, 7/11/2006

How do you choose between the expenditure types:

Employee Recognition - Non-taxable

Employee Recognition - Taxable

Gifts - Non-Cash

In seeking the answer to this question, I can understand why it is causing confusion. As a result Darrell Kozuch, Director, University Payroll, will be the guest at our next Brownbag lunch on July 23 rd in Ruffner Hall Room 175.

Mike Schwartz in Payroll (4-4379) can answer specific questions. As a general guideline Gifts-Non Cash is only for non-employees.

All non monetary awards of $100 or more. Examples of non monetary awards include meals, trips, plaques, desk items etc. The $100 is cumulative for the year, so if there are 2 gifts for $50 each in the year then if becomes taxable.

Employee Recognition - Nontaxable is used for:

All non-monetary awards of less than $100. Examples of non monetary awards include meals, trips, plaques, desk items etc.

I am giving a $500 book to a resident what expenditure type do I use?

The resident is considered an employee so Employee Recognition - Taxable is the appropriate expenditure type.

Who is the Medical Center contact for storeroom billings?

Jennifer Riffe 4-8446

Does sponsor paid travel need to be approved by Procurement when an employee is going to give a speech, demonstration, etc., at a conference?

No, this is not the same as vendor travel. Additionally there are no tax consequences associated with this travel from UVA’s standpoint. However, the conference may issue a 1099 depending on how they structure the payment.

Is there any way to identify transactions that will be hitting LD suspense before the payroll runs?

Unfortunately there are no reports to be run in advance of payroll. The most common reasons that individuals hit suspense are payroll dates exceeding the end dates of the award/project, project award linkages being in workflow at the point of payroll, and individuals not being 100% assigned out in the system.

What report can I run to determine the responsibilities of individuals in my organization?

Discoverer report - IS.ASC_Oracle Responsibilities by Employee

Where are original signed contracts kept?

They are in central offices. Most commonly sites are Comptrollers Office, OSP, Procurement or Facilities Management.